Distribution Corporation collects 35 % of a month's sales in the month of sale, 45 % in the month following sale, and 20 % in the second month following sale. Budgeted sales for the upcoming four months are: April budgeted sales $ 50 comma 000 May budgeted sales $ 150 comma 000 June budgeted sales $ 260 comma 000 July budgeted sales $ 230 comma 000 The amount of cash that will be collected in July is budgeted to be

Question

Business

Allison Costa

28 February, 09:44

Distribution Corporation collects 35 % of a month's sales in the month of sale, 45 % in the month following sale, and 20 % in the second month following sale. Budgeted sales for the upcoming four months are: April budgeted sales $ 50 comma 000 May budgeted sales $ 150 comma 000 June budgeted sales $ 260 comma 000 July budgeted sales $ 230 comma 000 The amount of cash that will be collected in July is budgeted to be

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Ellice · Answer 1

The amount of cash that will be collected in July is budgeted: $227,500

Explanation:

In Distribution Corporation:

The amount of cash that will be collected in July is budgeted = 35% x July budgeted sales + 45% x June budgeted sales + 20% x May budgeted sales.

May budgeted sales are $ 150,000

June budgeted sales are $ 260,000

July budgeted sales are $ 230,000

July budgeted cash collected = 35% x $230,000 + 45% x $260,000 + 20% x $150,000 = $227,500